Value dating
Every change to an account, counterparty, operating entity, structure or relationship carries the date it takes effect — its value date. That date is not the date somebody typed it in.
Three consequences follow, and they are the whole of the model:
- A read is always as of a date. Ask what the rate was on 3 March and you get the rate that was in force on 3 March.
- A forward-dated change is inert until the day walk reaches its date. Nothing happens on the day you enter it.
- A backdated change forces the account to revalue, because any calculation expression may switch on any property. We do not sort properties into “static” and “financial” ones at the enforcement boundary.
Worked example
A customer tells you on 10 March that their rate changed on 1 March, from 8% to 9%. You enter the change with a value date of 1 March.
| What you see | What happens |
|---|---|
| The change appears immediately in the change list | Recorded with value date 1 March |
| The account revalues | Nine days of accrual, 1–9 March, are recomputed at 9% |
| A statement asked for 5 March shows 9% | The as-of read answers on the value date |
| An entry keyed to 10 March is untouched | Only days on or after the value date move |
Enter the same change dated 1 April instead, and none of that happens today. The change sits pending, shows on the Staged Changes panel, and takes effect when the day walk reaches 1 April.
What each operation will accept
An operation declares which direction of dating makes sense for it, so the date picker never invites a date the operation cannot mean:
| Policy | The picker offers | Typical use |
|---|---|---|
None |
No date picker; takes effect now | An action with no meaningful history |
Forward |
Today or later | An address change, a nominated account change |
Backward |
Today or earlier | Correcting something that already happened |
Any |
Any date | A rate change, which needs both |
Fixing a dated change
A dated entry has a lifecycle. A forward-dated change that has not yet taken effect can be cancelled or re-dated from the Staged Changes panel. A backdated change with the wrong value is corrected by writing the right value at the same date. Correcting a backdated change re-triggers revaluation, on the same rule as the original.
Day count conventions are value-dated like everything else — see day count conventions.